Vinci, Eiffage Profit Harm From Toll Freeze Is Limited: Analysts
2015-01-28 14:47:25.199 GMT
By Francois de Beaupuy
(Bloomberg) -- Vinci drops as much as 2.9%, compounding
yesterday’s 3.5% decline, following French govt decision to
suspend 0.57% toll increase pending review, potential
cancellation of highway-operating contracts.
* Eiffage falls as much as 2.7% after yesterday’s 6.3% drop
* Aurel BGC estimates toll freeze for full year would cut EPS
by less than 1% at Vinci, by about 2.3% at Eiffage
* Deal between govt., highway operators on tolls,
concession durations, investment still most likely
outcome, though Vinci, Eiffage remain undermined by
political risk until highway stimulus package is signed
* Deal between govt., highway operators on tolls,
concession durations, investment still most likely
outcome, though Vinci, Eiffage remain undermined by
political risk until highway stimulus package is signed</li></ul>
* Natixis says yesterday’s drop in Vinci, Eiffage shares
priced in a toll freeze through 2017
* Societe Generale says flat tolls this year vs planned
increase of 0.57% would reduce Vinci’s valuation by ~EU200m,
Eiffage’s APRR concession by ~EU100m
* NOTE: France’s Royal Says ‘Reasonable’ to Freeze Highway
Toll Prices
* NOTE: French Highway Companies Consider Legal Action Vs
Government
For Related News and Information:
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To contact the reporter on this story:
Francois de Beaupuy in Paris at +33-1-5365-5051 or
fdebeaupuy@bloomberg.net
To contact the editor responsible for this story:
Simon Thiel at +44-20-3525-2814 or
sthiel1@bloomberg.net
2015-01-28 14:47:25.199 GMT
By Francois de Beaupuy
(Bloomberg) -- Vinci drops as much as 2.9%, compounding
yesterday’s 3.5% decline, following French govt decision to
suspend 0.57% toll increase pending review, potential
cancellation of highway-operating contracts.
* Eiffage falls as much as 2.7% after yesterday’s 6.3% drop
* Aurel BGC estimates toll freeze for full year would cut EPS
by less than 1% at Vinci, by about 2.3% at Eiffage
* Deal between govt., highway operators on tolls,
concession durations, investment still most likely
outcome, though Vinci, Eiffage remain undermined by
political risk until highway stimulus package is signed
* Deal between govt., highway operators on tolls,
concession durations, investment still most likely
outcome, though Vinci, Eiffage remain undermined by
political risk until highway stimulus package is signed</li></ul>
* Natixis says yesterday’s drop in Vinci, Eiffage shares
priced in a toll freeze through 2017
* Societe Generale says flat tolls this year vs planned
increase of 0.57% would reduce Vinci’s valuation by ~EU200m,
Eiffage’s APRR concession by ~EU100m
* NOTE: France’s Royal Says ‘Reasonable’ to Freeze Highway
Toll Prices
* NOTE: French Highway Companies Consider Legal Action Vs
Government
For Related News and Information:
First Word scrolling panel: FIRST<GO>
First Word newswire: NH BFW<GO>
To contact the reporter on this story:
Francois de Beaupuy in Paris at +33-1-5365-5051 or
fdebeaupuy@bloomberg.net
To contact the editor responsible for this story:
Simon Thiel at +44-20-3525-2814 or
sthiel1@bloomberg.net